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House panel OKs P200 daily wage hike for private sector

Speaker Ferdinand Martin Romualdez with leaders of the country’s major labor groups during a Jan. 28 meeting.*

The House Committee on Labor and Employment on Thursday passed a measure mandating a P200 daily across-the-board wage increase for private sector workers, moving forward with a proposal that gained momentum after Speaker Ferdinand Martin Romualdez met Tuesday night to discuss their call for higher wages, a press release from the House of Representatives said.

The committee, chaired by Rizal 2nd District Rep. Juan Fidel Felipe Nograles, approved a motion by Cotabato 3rd District Rep. Ma. Alana Samantha Santos to pass the substitute bill for the “P200 Daily Across-the-Board Wage Increase Act,” consolidating House Bill Nos. 514, 7568, and 7871.

If enacted, the measure would require all private businesses, regardless of size or industry, to implement a P200 daily pay hike for their workers.

Romualdez—together with Deputy Speaker and TUCP Party-list Rep. Democrito Raymond Mendoza and Assistant Majority Leader and Tingog Party-list Rep. Jude Acidre—met with labor leaders Tuesday night, where he affirmed the House’s commitment to fast-tracking a wage increase measure while ensuring economic sustainability.

Aside from Nograles, Mendoza, and Acidre, the committee-approved bill was authored by Reps. Ramon Jolo B. Revilla III (Cavite, 1st District), Arlene Brosas (Gabriela PL), France Castro (ACT Teachers PL), Raoul Manuel (Kabataan PL), Ron Salo (Kabayan PL), Ramon Guico Jr. (Pangasinan, 5th District), Joseph “Jojo” Lara (Cagayan, 3rd District), Robert Raymund Estrella (Abono PL), Yedda K. Romualdez (Tingog PL), Josefina Tallado (Camarines Norte, 1st District), and Jose Ma. Zubiri (Bukidnon, 3rd District).

Under the proposed law, employers must provide the additional P200 per day to their workers’ salaries upon effectivity.

The legislation prohibits employers from offsetting the increase with previously granted wage adjustments unless these were explicitly anticipated under collective bargaining agreements. Existing benefits and allowances cannot be reduced as a result of the pay hike.

During the hearing, Mendoza called the committee approval a historic moment, noting that it could be the first legislated wage hike since 1989.

Mendoza emphasized that the Philippines “demands and deserves a raise,” citing the long-standing struggle of workers to obtain fair wages.

He recalled that in 1989, Congress raised the minimum wage by 40% without triggering massive inflation or unemployment, despite political instability at the time.

Brosas and Castro welcomed the committee’s decision, calling it a “major step forward” in workers’ long-standing fight for higher wages.

Brosas reiterated that the wage hike remains insufficient compared to the P1,207 family living wage estimated by IBON Foundation as necessary to cover basic household expenses.

She also criticized existing policies that burden workers, citing the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and increased Social Security System contributions, which she said favor big businesses over labor.

Castro noted that the bill offers a national, legislated alternative to the regional wage board system, which labor groups have long criticized for failing to keep up with inflation.

Castro credited the approval to the persistent lobbying and mobilization efforts of workers’ groups.

Romualdez said the House is considering mechanisms such as wage subsidies and exemptions for struggling MSMEs to mitigate any negative economic impacts of the wage hike.

The Department of Labor and Employment (DoLE) will be tasked with enforcing the wage increase, conducting inspections to ensure compliance.

Employers who violate the law face fines of P50,000 to P100,000 or imprisonment of up to four years.

Violators will also be required to pay double the amount of unpaid benefits owed to their workers.

The bill will now move to the House plenary for further deliberation.*

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